Vietnamese conglomerate Vingroup is set to exit the shopping mall business, selling 41.5 per cent of its stake in Vincom Retail for an undisclosed sum.
The buyers are domestic partners with no individual parties holding more than 25 per cent, a Vingroup spokesperson said, declining to provide further details.
Vingroup said in a statement it will sell its entire stake in SDI Trading Development and Investment, which owns a 99 per cent stake in Sado, Vincom Retail’s biggest shareholder. The acquisition is expected to be completed between this month and the third quarter of this year, according to Reuters.
Once the deal is completed, Vingroup’s stake in Vincom Retail will be down to 18.37 per cent. SDI, Sado and Vincom Retail will no longer be considered Vingroup subsidiaries.
According to Vingroup’s spokesperson, there will be no changes in the organisation, management and operation model of Vincom Retail as Vingroup will manage the operations of the shopping centres on behalf of Vincom Retail through a management contract.
Vincom Retail currently operates 83 shopping centres across the country and plans to add six more locations this year. Its sales were up 33 per cent to VND 9.79 trillion (US$396 million) last year, with net profit reaching VND4.41 trillion ($178.4 million), up 59 per cent year on year.
The deal is expected to be one of the country’s largest M&A transactions in recent years.
Last year, Vingroup was reported to be in talks with potential investors, including Central Retail, to sell stakes in its shopping mall unit. Vingroup businesses are spread across the real estate, resorts and automobiles sectors.
